Which of the Following Statements Is True of Industrial Economies

question 38

Multiple Choice

Which of the following statements is true of industrial economies?

• A)Industrial economies export their goods to other types of economies for raw materials.
• B)Industrial economies create a new rich class and small but growing middle class.
• C)The vast majority of people in industrial economies engage in simple agriculture.
• D)Industrial economies are rich in one or more resources but poor in other ways.
• E)Industrial economies consume most of their output and barter the rest for simple goods and services.

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Definitions:

Cakes

Baked desserts that are usually sweet, made from ingredients such as flour, sugar, and eggs.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm operates on a larger scale due to inefficiencies that arise.

Long-Run Average Cost

The per-unit cost of production in the long run, where all inputs are variable and economies of scale have been reached.

Marginal Cost

The cost incurred in producing one additional unit of a product or service.